Introduction to Accounting 120

Unit Four: Debit And Credit TheoryAssignment 5Value 55

Group Members: and Date:

Complete Question I, Question II and Question III on this sheet. Save the document as U4A5 in your U: drive. Then complete Question IV and Question V (u4A4.xls). You will print all these files upon completion.

Question I Value 13

  1. Define

Journal—

Journal Entry—

Journalizing—

Book of Original Entry—

  1. Refer to the rules of journalizing when answering the following:

Where is the year always entered? Answer:

When do you re-enter the year? Answer:

Where is the month always entered? Answer:

When do you re-enter the month? Answer:

What is the rule for recording the day of a transaction? Answer:

Which accounts are recorded first when recording a journal entry? Answer:

Which accounts are recorded second when recording a journal entry? Answer:

  1. What is an opening entry? Answer:
  1. Provide two purposes of the journal. Answer:

Question IIValue 9

The general journal shown below contains a number of errors. Review the journal and prepare a list describing the mistakes.

Error List:

Question IIIValue 5

The following journal entries are not dated nor do they have explanations. The entries pertain to a motor repair shop owned and operated by Larry Nesbit. Examine the partial journal and prepare a list of possible transaction explanations.

1.

2.

3.

4.

5.

Question IVValue 20

Classics, a special event rental company, is owned and operated by Madeline Rouse. The accounts for her business are given below.

Bank

A/R D. Killen

A/R E. Taney

Supplies

Equipment

A/P City Cleaners

A/P Matrix Supply

M. Rouse, Capital

Journalize the following transactions for Classics in the two-column general journal provided (U4A5.xls).

Transactions

March

3Paid $300 to City Cleaners on account

6Paid $500 cash for monthly rent

9Provided tuxedos and gowns for a wedding. The customer paid $1 200 cash.

10The owner withdrew $250 cash for personal use.

15Received $300 from D. Killen as payment on account

20Paid $120 for repairs to chairs.

24Paid $300 for wages

28Paid $200 cash for supplies

Question VValue 8

Stephen Banks, a lawyer had decided to open his own business (Banks Law Office) on June 15, 200—. On that date, he has the following assets and liabilities.

Assets

Bank 3 200

Law Library4 000

Office Supplies250

Office Equipment9 300

Automobile17 500

Liabilities

Bank Loan9 850

Avery Supply Ltd.3 680

  1. Use Excel (U4A5.xls) and prepare a balance sheet for Stephen as of June 15.
  2. Record the beginning financial position of Stephen in the two-column journal on the proper worksheet of U4A5.xls

Save this U4A5.doc and U4A5.xls to your U:\ drive and print.